The Executive Board of Nahdlatul Ulama (NU) Muslim organization has officially obtained a special mining business permit (IUP) for coal in East Kalimantan, citing plans to begin the exploration phase in January 2025.
NU chairman Yahya Cholil Staquf announced that NU has been granted a coal mining permit for a 26,000-hectare area, which was previously managed by Kaltim Prima Coal (KPC).
“We express our gratitude to President Joko Widodo for granting the concession up to the issuance of the IUP, so we are now ready to start mining operations in the designated location,” Yahya told the media at the Merdeka Palace in Jakarta on Thursday, August 22, 2024.
Yahya made this statement after a meeting with President Joko Widodo at the Palace. He mentioned that it was PBNU that initially sought the meeting with President Jokowi.
The NU delegation to the palace included Chairman Yahya Cholil Staquf, Rais Aam (Supreme Leader) of NU Miftachul Akhyar, and NU Secretary-General Saifullah Yusuf.
Yahya said that NU, through its business unit, has already started some exploration activities in a small part of the area, but accurate production estimates for coal cannot yet be determined.
He also mentioned that coal production could begin soon, as NU has already received the IUP and official permission for mining activities.
“Since the IUP has been issued, hopefully, we can start working in January (2025),” Yahya said.
Yahya, who is also the elder brother of the Minister of Religious Affairs Yaqut Cholil Qoumas, added that NU still needs to communicate with its business partners regarding NU’s strategic steps for managing the new coal mine, including the potential for downstream projects.
The granting of a coal IUP to a religious organization is in line with Government Regulation (PP) No. 25/2024 on the Implementation of Mineral and Coal Mining Business Activities.
This new regulation has added and amended 17 articles, including Article 83A (paragraphs 1-7), which specifically regulates the offering of mining business areas (WIUP) to religious organizations.
The government has prepared six WIUPs to be offered to religious organizations, originating from former Coal Mining Concession Work Agreements (PKP2B) areas across Indonesia.
Religious organizations are prioritized to receive mining areas that were formerly managed by companies like Kaltim Prima Coal (KPC), Adaro Energy, Indika Energy, Kendilo Coal Indonesia, Kideco, Multi Harapan Utama, and Arutmin Indonesia.
The ex-PKP2B areas offered to these organizations typically contain coal with a calorific value above 4,000 GAR (Gross as Received), which is commonly used for steam power plants (PLTU), cement industries, steel, and metal processing.
